Prajna Capital

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• JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund
• Tax Free Bonds
• Is low Net Asset Value (NAV) is cheaper?

JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund Posted: 07 Dec 2014 05:18 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund    The new fund offer opens for subscription on 16th June and closes on 30th June. JP Morgan Mutual Fund today announced the launch of its open end fund of fund called Emerging Markets Opportunities Equity Offshore Fund. The fund will invest in an aggressively managed portfolio of emerging market companies in the underlying fund - JPMorgan Funds - Emerging Markets Opportunities Fund, says a JP Morgan press release. Noriko Kuroki, Client Portfolio Manager, Global Emerging Markets Team (Singapore), JPMAM said, "Emerging markets have been out of favour for several years, as growth decelerated and earnings struggled. However, in a world of globalisation, we believe that EM will eventually re-couple with DM, leading to the long-awaited earnings recovery. Encouragingly, there are some tentative signs that this EM recovery is unfolding, albeit gradually. EM is now attractively priced both in relative to its own history as well as against DM, offering a very attractive entry point for investors in India." Despite the modest decline over the past several years, emerging markets are considerably independent of developed markets with growing trade possibilities. The earnings per share and dividend per share have also surpassed significantly those of developed markets. With a contribution of over 50% of global GDP, this is an attractive time for investment in emerging markets, said the release. Nandkumar Surti, MD & CEO, JPMAM India said, "Developed markets continue to exhibit stable to strong growth. It's only a matter of time before this has a positive effect on emerging market economies. The fundamentals for emerging markets are already there. The only missing ingredient is earnings growth. The earnings growth should now start coming, given the linkages to the developed world. We want to be early in the market to allow investors an opportunity to invest at relatively attractive valuations." The new fund offer opens for subscription on 16th June and closes on 30th June. Benchmarked against Morgan Stanley Capital International (MSCI) Emerging Markets Index, the fund will charge an exit load of 1% if units are redeemed before one year from the date of allotment. The minimum application amount is Rs. 5,000. JP Morgan Mutual Fund manages Rs. 16,248 crore as on March 2014. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Franklin India Smaller Companies E. Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

Tax Free Bonds Posted: 07 Dec 2014 03:00 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Tax Free Bonds With bond yields falling, it could be a good time to invest in some long- term debt products like tax- free bonds. According to brokerage firm Bonanza Portfolio data, Hudco's tax- free bonds, which were issued in May 2012, have given total annualised return of almost 8.27 per cent ( as on December 2). Similarly, Rural Electrification Corporation (REC) tax- free bonds have given an annualised return of 15. REC bonds were issued in March this year. Total absolute returns from Hudco and REC stand at around 23 and 10.5 per cent, respectively. The coupon or interest incomes from these bonds stand at 8.2- 8.4 per cent. National Highway Authority of India (NHAI) bond is currently trading at ₹ 1,124. These were issued on January 25, 2012, and will have its next interest pay out on October 1, 2015. That's a huge premium today considering interest will be paid in October next year. Despite all the past interest pay outs, if the bondholder sells the bond, it would result in an absolute return of 12.4 per cent. The bonds are trading at a premium as yields have fallen, discounting for a probable cut in interest rates. Yields on 10- year government security bonds have fallen 58 basis points or 0.58 per cent from 8.645 per cent by May- end this year. Yields on these bonds touched a 16month low of 8.09 per cent. Individual investors who missed the bus could park some funds in these bonds. Additionally, prices of these bonds would run up once RBI cuts interest rates in the next one or two quarters. Bond prices are inversely proportional to interest rates. Given there is only expectation of a rate cut and no clarity on it on the exact timeline, one will need to be sure if they intend to buy and hold these bonds or not. Experts, however, are also advising caution for novice investors. If an individual investor is looking for capital appreciation then he should be a savvy investor who knows when to exit, as it would mean taking a call on interest rates. Otherwise, she feels, tax- free bonds are not suitable enough for retail investors, as now these will need to be bought in the secondary market. Also, the secondary corporate debt market is not very liquid and trading in bonds is few and far between. Only those investors with an investment horizon of more than one year should buy these bonds, in case RBI delays rate cuts. A simpler solution for individuals would be to take exposure in debt mutual funds — income funds. Many of these have taken position in the long- term government securities. This would also diversify your debt portfolio into various bonds across maturities. According to mutual fund rating agency Value Research, income funds have returned nearly 12 per cent in the last one year and 6.5 per cent in the last six months. Existing tax- free bonds are trading at yields much below their coupon, and have delivered good capital gains. For instance, a 10- year tax- free bond issued at a coupon of 8.14 per cent in 2013 is currently trading around 7.20 per cent. By redeeming your investment in tax- free bonds invested in 2013 or earlier and investing the proceeds in a high quality portfolio of mainly AAA rated papers ( currently offering a yield of 8.6 per cent), you would make a post- tax, post- expense Internal Rate of Return ( IRR) of 8.59 per cent for the next three years ( higher than 8.14 per cent coupon). Further, taking into account the capital gain you make on your original investment, this strategy would generate an IRR of 10 per cent since inception, that is, between 2013 and 2017. The additional earning of 1.85 per cent in the initial four years would mean a compounded additional return of 7.6 per cent for four years. If you stay invested in the tax- free bond, the bond would have to fall by around 90 basis points from current levels in the next three years to generate 10 per cent returns. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Franklin India Smaller Companies E. Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

Is low Net Asset Value (NAV) is cheaper? Posted: 07 Dec 2014 01:49 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Is low net asset value (NAV) is cheaper? Net asset value makes no difference to returns. Consider performance of a scheme, not its NAV. That a fund with a NAV is cheaper is a myth   If there is one myth that fund distributors love to propagate, it is that a fund with a low net asset value (NAV) is cheaper. "The NAV is just Rs 10," is their sales pitch. As a result, investors flock to new fund offerings (NFOs) to exploit this so-called cost advantage. In actuality, the NAV is totally irrelevant and should not even be considered when making an investment. Not convinced? Let's say that two funds have identical portfolios. One has been around for a while and the other is a newly-launched fund. As the value of their (identical) holdings increase, the NAV will rise by the same percentage. So investors in both will benefit equally. To put it numerically, let's say the NAV of the two funds are Rs 10 and Rs 50 and they rise to Rs 11 and Rs 55, respectively. So it might appear that one has just risen by a rupee while the other by Rs 5, but in reality, they have both shown a 10 per cent rise. Of course, the number of units held would differ. A low NAV would imply a higher number of units and a high NAV would indicate a lower number of units. So let's say you invest Rs 5,000. It would get you 500 units with an NAV of Rs 10 but only 100 units if the NAV is Rs 50 (assuming no entry load). Yet, in both cases, the value of the investment is identical. So Rs 5,000 invested in each would show the same gain. The 500 units (for which you paid Rs 10/unit) would rise to Rs 5,500 at Rs 11 per unit. The 100 units (for which you paid Rs 50/unit) would rise to Rs 5,500 at Rs 55 per unit. The 'cost' of a scheme in terms of its NAV has nothing to do with returns. What you want to buy in a scheme is its performance, not its NAV. The only instance where a higher NAV may adversely affect you is where a dividend has to be received. This happens because a scheme with a higher NAV will result in a fewer number of units and as dividends are paid out on face value, higher NAV will result in lower absolute dividends due to the smaller number of units. But even here, total returns will remain the same. So from whichever angle you see it, the NAV makes no difference to returns. Mutual fund schemes have to be judged on their performance. And the simplest way to do this is to compare returns over similar periods. The confusion over NAV arises simply because investors view a fund's NAV like a stock price. Nothing could be farther from the truth. The current price of a stock could be much lower or higher than its actual value. But the NAV just reflects the current value of the portfolio as it is. Next time you are evaluating a fund, take a good look at the portfolio and returns over various time periods. Remember, it is the stocks that the fund manager has invested in that determine the returns. The value of the NAV is immaterial. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms --------------------------------------------- Best Performing Mutual Funds Largecap Funds Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Franklin India Bluechip ICICI Prudential Top 100 Fund B. Large and Midcap Funds Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Birla Sun Life Front Line Equity Fund Franklin India Prima C. Mid and SmallCap Funds Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Birla Sun Life Dividend Yield Plus SBI Emerging Businesses Fund HDFC Mid-Cap Opportunities Fund ICICI Prudential Discovery Fund D. Small and MicroCap Funds Invest Online DSP BlackRock MicroCap Fund Franklin India Smaller Companies E. Sector Funds Invest Online Reliance Banking Fund Reliance Banking Fund ICICI Prudential Banking and Financial Services Fund F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver DSP BlackRock Tax Saver Fund Reliance Tax Saver (ELSS) Fund G. Gold Mutual Funds Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund Birla Sun Life Gold H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now

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